Why “Best” Can’t Stand Still
Picture a small manufacturer. They adhere to a “best practice” for safety protocols that used to be in an industry handbook. That makes sense — until a new law, such as the German Lieferkettengesetz, requires more thorough documentation of every supplier. All of a sudden their purported best practice is outdated. They endanger legal peril and do not satisfy the state of the art.
Most SMEs receive an assurance that “best practice” or official standards will protect them. But experience in the real world demonstrates that “best” never is. Laws, technology, and industry guidelines all change faster than standards do. This article discusses why knowledge management (KM) is critical to evolving with these changes. We’ll see how the German courts weigh “state of the art” against outdated norms, why best practice is an evolving goal post, and how SMEs can remain nimble in the face of this uncertainty.
1. Myth of an Evergreen “Best Practice”
1.1 Best Practice as Moving Target
“Best practice” is often treated as a kind of gold seal by people. They believe it will have permanent standing as a method or tool. But in actuality, best practice is merely a reflection of a method’s current success. When new technologies or regulations emerge, the practice may become insufficient. Companies that stick to antiquated practices run the risk of inefficiency, legal liability or damage to their reputations.
Case in point: A data handling procedure used to be ISO compliant. A new update of the GDPR now mandates stronger anonymization. The previous “best” solution doesn’t pass muster with a new standard.
1.2 State of the Art vs. “State of the Science or Research”
In Germany, there are three levels of technology as defined in law:
State of the Art Science and Research: Highly dynamic with many novel approaches that are only just entering the market.
Technologies: Market-ready bearing technologies which are the most efficient in legally utilised goals.
Generally accepted rules of technology: Solutions that have been well-proven in practice and show consistent results, although possibly less innovative
Eventually, a new approach may shift from “Stand der Wissenschaft und Forschung” to the “Stand der Technik.” And then, once there’s widespread adoption and proven results, it can become an “allgemein anerkannte Regel der Technik.” Every step mirrors the changes that the industry or market experience. A “best practice” now can become obsolete as newer solutions prove superior or the law evolves.
2. How Courts Handle “State of the Art”
2.1 Priority Over Norms
Case law in Germany frequently sees the actual state of the art as superseding aged standards. So a company that says “We followed the standard in 2012” may find itself unable to escape liability even if there exists a more advanced (not yet standard) method in 2023. Courts say the true, objective level of technical advancement is more important than a slowly changing norm.
· Implication: Using only the older normals can let you down if there is a more modern approach that is known and proven. A court could find that the company ignored the real state of the art.
2.2 Example of „Lieferkettengesetz“
Consider the German Supply Chain Act. Even if an ISO standard says the supply chain should be checked minimally, the law calls for much deeper oversight. The law thus exceeds the normative baseline. This means that companies that only rely on the older ISO guidelines could be in violation of the new law. In a nutshell, “best practice” has given way to more stringent laws embodying a more advanced “stand der Technik.”
Knowledge Management is all about making it accessible, allowing you to be more efficient and effective.Why is Knowledge Management important?
KM makes sure you identify these changes early. When your knowledge processes are tracking new laws or tools, you can shift in the blink of an eye. A knowledge base, constantly updated by staff who track legal and technical developments, helps keep you from holding on to outdated norms.
3. As Dynamic Benchmarks for Industry Guidelines
3.1 Reality Check: The Advantages of Industry Guides
National or international norms can be slow to catch up with real-world breakthroughs. But trade organizations frequently issue guidelines that can respond quicker. They are infused with daily challenges, emerging technology and new case studies. So you can use these guidelines to help you stay relatively close to the real current state of the art.
· Tip: Consider looking at industry or sector standards to see if your method aligns with recommended practices as an added measure. These norms may represent more recent solutions—even when a norm lags.
3.2 Example: IT-Security-Related Measures
An official standard might say, “Use strong encryption.” But an influential IT-security association could advocate for advanced multi-factor systems or zero-trust architectures. If a court sees the market embracing such advanced measures, it may decide that they constitute the real stand der Technik — even if an earlier norm has yet to expressly incorporate them.
3.3 The Role of Knowledge Management
It is where a structured knowledge management system comes in handy to help the employees keep up with these market trends. They periodically read new technical bulletins or whitepapers. We throw them into the wiki or the central doc base. It allows the company to quickly learn and stay aligned with the best methods available.
4. Best Practice IS a Living Concept
4.1 how knowledge management can aid your evolution
Training data goes up until October 2023. You course-correct your processes when your employees have a new find. This living method suits reality more than a rigid “best practice” book. A healthy KM culture motivates individual staff members to:
· Discover new techniques in conferences or journals.
· Compare them with how you are doing it now.
· Pilot/adopt where it makes sense.
· Document results and revised insights.
4.2 Not Updating: Real-World Ramifications
Legal Risk: You may no longer be the real state of the art.
· Reputational Risk: Clients perceive you to be behind. Rival offerings venture to tout themselves as advanced.
· Inefficiency: You spend resources on less effective solutions, or miss simpler solutions that appeared in the last few years.
4.3 A Metaphor Based on Nyquist-Shannon
Consider the Nyquist–Shannon sampling theorem: if you sample a high-frequency signal at too low a rate, you get aliasing or phony images. Likewise, if you only “sample” the standard every few years, you may be blind to things that are changing quickly. An up-to-date knowledge base enables more frequent “sampling” of fresh advancements.
5. Practical Steps for SMEs
5.1 Ongoing Review Cycles
Set up regular check-ins — once a year, for instance — to see whether your practices are in line with the state of the art. This can involve:
· Looking at large industry associations.
· Reviewing legal updates.
· Questioning staff about whether they had better options.
Make sure to document these findings in your knowledge repository. If there’s a shift, devise a plan for adopting or testing new solutions.
5.2 An In-House Evaluation Method
One method is to create a basic scoring mechanic. You rate each method by:
Acceptance: How accepted is this method?
Proven in Practice: How long and how thoroughly has it worked?
Plot results in a chart. If you see a method that is considered, but not highly tested, it is towards the upper “stand der Wissenschaft und Forschung.” If it becomes commonplace over several years, it might be an “allgemein anerkannte Regel der Technik.” This lets you know if your method hangs out in the older zone.
5.3 Align leverage with industry bodies
See if your sector’s trade association or working group produces updated bulletins. An IT-security team, for example, might publish monthly guidance. By tying your knowledge processes into these bulletins, you know when to follow up or discover new techniques or changing practices. Capture them in your knowledge base, elevate them to staff, and explore if they are feasible.
5.4 Document Rationales
If you try a new method, note the reason. If you pass on a new approach because it is too expensive or immature, just note that as well. This transparent rationale can assist in legal or compliance reviews. The best practice is not the best defense; knowing the why of your decision would stand in a conflict much stronger than anything vague about “it was best practice.”
5.5 Insist On Employee Participation
Staff often uncover cutting-edge tools or fresh legal interpretations in everyday work. Encourage them to provide quick updates, shared via an internal wiki or a chat. Appreciate those contributions. A culture of sharing knowledge means you spot changes sooner than waiting for official norms to keep pace.
6. The Effect on Knowledge Management
6.1 More Than a Repository
By making it dynamic, you have a learning platform built on your knowledge base. They see it as a place to track not just how tasks are done, but how they should be done going forward. In adopting this forward-thinking mindset, you are able to:
· Try new solutions with little to no risk.
· Replace antiquated “best practices” that don’t work anymore.
· Alert employees of changes as early as possible.
6.2 Staying Away from the “Check the Box” Trap
Many SMEs treat the documentation as an exercise. They want to satisfy an ISO or legal standard, and that’s it, and then they go on. That method gets old fast.` But if you stop looking at the docs, they freeze at whatever old level. The true “state of the art” may have moved ahead. Then the real test of knowledge management — your knowledge management — fails when facing new demands.
6.3 Connecting to “Stand der Technik”
Because “stand der Technik” falls between “stand der Wissenschaft und Forschung” and “generally accepted rules,” you want your company to be in that range. You can keep the mind open on higher-level ideas while making sure of practical market viability. That sweet spot—when a technique is effective and consistent—is often what brings the best ROI for SMEs.
7. Pressure: Legal and Market — The High Stakes
7.1 Example of Supplier Chain
Imagine a small toolmaking company. A new supply-chain law could require traceability. An earlier ISO standard might only recommend partial checks. If you use that old standard, you violate the new law. And a competitor investing in modern track-and-trace solutions passes the updated standard. Courts or regulators might consider them the real “state of the art,” not you.
7.2 Real-World Penalties
· Liability: Fines or lawsuits when your approaches do not comply with new rules.
· Loss of Business: Major clients could choose a competitor that shows modern compliance.
· Frustration at Employee Level: Employees pressured to use obsolete or dubious methods will leave.
7.3 Knowledge Management Tools
A robust knowledge system enables you to keep track of legal updates and disseminate it to relevant staff. Perhaps HR recognizes a new labor standard or R&D identifies a new safety directive. You document the new requirement, associate it with applicable processes, and monitor how you intend to comply. Such preparedness can determine if the adjustment will be smooth or costly.
8. Hold Onto Best Practice
Best practice is a moment in time, not a permanent designation. The true measure is whether your practices are comparable with the best solutions currently available, given existing industry or legal requirements. You have to consider “best” a moving target in a rapidly changing business environment. Slackness finds its way into legal or operational trouble.
Knowledge/account management will ensure you track your performance and the culture you establish, not only in this deal but always. You integrate staff intuition, external rules and a systematic framework for putting things on paper. That synergy pulls your firm up the “to-the-moon” curve, rather than allowing it to fall to “accepted but stale” solutions.
Remember: What you already know today might not be enough for the needs of tomorrow. Cultivate a culture that considers “best practice” to be fluid. Track changes actively. Share new ideas widely. That’s how you keep up with changing norms and laws.
Want your knowledge management in line with the actual cutting-edge?
Try these steps:
- Audit Your Existing Practices: Ensure they align with those published guidelines or laws.
- Establish Review Periods: You need to ensure your docs and methods get updated at least once a year.
- Involve Staff: Shorten the feedback loop. Do staff post ideas or spotlight new solutions?
- Compare Solutions: Use a simple scoring tool to evaluate whether your approach is “stand der Technik” or being pulled back to preexisting methods.
- Share your experiences: Is it hard for you to keep up with changing laws and guidelines? How do you keep track of new tech or best practice? Share your thoughts in the comments. Let’s together polish our understanding.
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